Alibaba makes Beijing a hub
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Alibaba's headquarters in Hangzhou, Zhejiang Province, Aug 27, 2015. [Photo/China Daily] |
Alibaba and JD.com have nothing in common in terms of business models. Alibaba's market share is still significantly bigger than JD's. But Lu said with China's overall online shopping growth momentum slowing, Alibaba needs to work harder in North China and compete harder with JD.com, in order to improve future performance.
China's online shopping market grew 39.6 percent year-on-year to 872.5 billion yuan ($136.7 billion) in the second quarter of this year. In the same quarter last year, the market grew 46.1 percent year-on-year, said iResearch Consulting Group.
Alibaba said in its statement that it will invest unlimited resources in northern markets in China, including its online business-to-consumer shopping service Tmall, and Cainiao Logistic Services. It will also integrate online and offline resources from its shopping mall partners Suning Commerce Group Co Ltd and Intime Retail (Group) Co Ltd.
"Apart from gaining a new growth point in e-commerce, Beijing as a second hub can also bring Alibaba other benefits because as the capital city of China, Beijing has a critical position in politics, media and talent," said Wang Xiaoxing, analyst with Analysys International.
"To be honest, Hangzhou is not that attractive to lure some of the country's best talent to work for Alibaba," he said.
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